Many may not know that the State of Arkansas has a requirement that all photographers MUST charge sales tax. I took $25 worth of photography a few months ago and was told because of this I must charge sales tax or be sent to the Rack. Ok, I did it. It cost me $200 but I went and made it all back and then some. Everything seemed kosher and copasetic. Until….
I was offered a Job as a Staff Photographer with a local agency this last week. They wanted to hire me as an independent contractor so they would not have to pay FICA and workers compensation fees. That sounded great to me and what a Break!
But I got to thinking. How does that effect my sales tax. I called the state and discovered that because I am not an actual “employee” and the firm does not pay FICA or other things that I must collect the sales tax. With my rate that comes to about $2 an hour more than what I negotiated.
Needles to say, when I told the agency what was going on they weren’t too happy. He is using me tonight because its too late to get another photographer but will have to rethink my employment. So come Monday Morning I may not have a job!
If anyone says regulations do not hinder employment or people starting a small business all they need to do is call me and I will let them hear the entire horrid story. they will never look at things the same way again.
Thanks State of Arkansas…. The government may just have cost me my job.
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